S H O P P E R I N S I G H T I N VA S I O N O R I N N O VAT I O N O W N B R A N D S O R B R A N D S

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1 SHOPPER INSIGHT INVASION OR INNOVATION OWN BRANDS OR BRANDS Jan Hillesland

2 JAN HILLESLAND EXPERIENCE More than18 years experience in international sales, innovation and marketing. Vice President in Carlsberg Global Marketing, Sales and Innovation. Commercial Responsible for Carlsberg in Asia, Germany, Norway & Denmark. Commercial Director in Coca Cola, Poland. CURRENT ; FOUNDER & PARTNER : BigBlue & Company Link Analytix RetailFlux BlueBox Insight

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4 SHOPPER INSIGHTS Base your decisions on INSIGHTS

5 YOU TALK A LOT ABOUT THE CONSUMER. THAT S IMPORTANT! BUT FIRST SOMEBODY NEED TO BUY YOUR PRODUCTS! I WILL FOCUS ON THE SHOPPER

6 SEACHILL & THE SAUCY FISH CO TALKED ABOUT: How the consumers wants to recieve the products in shelf THIS IS WHAT IT IS ALL ABOUT!

7 1967: 7

8 today... 8

9 IN-STORE ARE SHRIMPS A COMMODITY? A shrimp is a shrimp and I understand that a crab is a crab!

10 INNOVATION TRANSLATES INTO HIGHER PRICES BY MOVING UP THE EXPERIENCE CHAIN AND BY BUILDING BRANDS The Danish Sushi case, the Norwegian Cape Fish /Live Crab and Lerøy showed you the right direction moving up the Brand ladder % Experience 2-5 $ pr cup. Service 1-2 $ pr cup. In-Home Experience cent pr cup. Commodity 1-2 cent pr cup. Brands cent pr cup.

11 1% 80% 1

12 THE GREEN SQUARE?

13 Where WHERE is the green IS THE Square? GREEN SQUARE? Side MOB

14 DID YOU SEE THE TWO RED TRIANGLES?

15 Where is the green Square? Side MOB

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17 BASIC NEEDS

18 BASIC NEEDS Safe Avoid mistakes

19 BASIC NEEDS SAFE CHOICES Known BRANDS & Colours GRILL Mixers

20 BASIC NEEDS Control Do not run empty

21 BASIC NEEDS Convenience Simple / fast Time used to make dinner min 18 min

22 BASIC NEEDS Convenience Simple / fast 3-7 min. Time used in STORE Service vs. no service

23 BASIC NEEDS Good deal Rationalize our emotional decisions

24 BASIC NEEDS Recognition See me, see how clever I am, like me SEE MUM!

25 BASIC NEEDS Safe Security Control Convenience God deal Recognition Avoid mistakes Known Brands Not run empty Simple & fast Rationalize our emotional decisions See me, see how clever I am, like me.

26 A TYPICAL EUROPEAN FAMILY IT S ALL ABOUT OLD HABITS The total number of unique products bought by a European family per year % of these are basic/must-have products.

27 DINNER HABITS IN EUROPE What percentage (of Europeans) DO NOT KNOW what to have for dinner TODAY? 78% How many unique meals does a European family eat for dinner PER YEAR? 10

28 WHAT KIND OF DINNER? What does a Norwegian person think is the most frequent dinner dish?! The intention and behaviour differs signifigantly. 65%

29 INNOVATIONS

30 A TOTAL OF NEW PRODUCT LAUNCHES PER YEAR IN NORWEGIAN GROCERY STORES LAUNCH YEAR WINDOW QUANTITY Aprox 50% of these are replacement products (new design etc)

31 NPD & INNOVATIONS 15% of all SKU s 1 % 1,1 % of total turnover 85% 98,9 %

32 *Lanseringer % OF NEW PRODUCT LAUNCHES* HAVE A 15 MONTH SHELF LIFE. Approx 90-95% has a 3 year shelf life... *Launches 2011

33 A FEW SUCCESS CRITERIA

34 1 MOST OF OUR COMPETITORS ARE INTERESTED IN DOING SOMETHING DIFFERENT OR WANT TO APPEAR NEW. I THINK THOSE ARE COMPLETELY THE WRONG GOALS

35 1 MOST OF OUR COMPETITORS ARE INTERESTED IN DOING SOMETHING DIFFERENT OR WANT TO APPEAR NEW. I THINK THOSE ARE COMPLETELY THE WRONG GOALS

36 1 COPY WITH PRIDE Apple Powerbook 1991 ipod 2001 iphone 2007 ipad 2010 Atari STacy 1989 MPMan MP3 Player Nokia Microsoft Tablet 2002

37 2 POSITIONING 1 OWN A WHOLE but relatively small UNIQUE CAKE? 2 OWN A BIG PIECE OF A BIG CAKE? Most likely, the launch will FAIL The customers want the safe choice A bigger chance of SUCCESS If the product is better on one or more of the main drivers in the category.

38 4 PACKAGING INNOVATION INCREASE VOLUME From 1.0 ltr. to 1,5 ltr. From 0,33 ltr. to 0,5 ltr. FROM GLASS TO PET Lighter bottle Unbreakable New bottle cap

39 4 PACKAGING INNOVATION PRICE PERSEPTION WHAT IS THE CHEAPEST? 71,5% More expensive each kilo 520 gram 250 gram 24,90 67,7% More expensive each kilo Out of pocket - pricing Give margin-products the best place. 500 gram 250 gram

40 5

41 5 SUCCESS CRITERIA FOR INNOVATION Do it BIG Packaging Test Launch Copy with pride 1 Positioning

42 BRANDS OR OWN BRANDS?

43 WHAT IS THE DIFFERENCE? DEVELOPMENT? BRANDS OWN 20% Who had heard about this BRAND 6 years ago? Higher value than most other brands OWN BRANDS 80% of sale 90% of all SKU s. Switzerland 54% Out with Brands. Nivea destroyed much of our price perception

44 TESCO BRAND PORTFOLIO COVER ALL SHOPPER -AND PRICE SEGMENTS Price

45 WHO COPIES WHOM? ALL COPIES ALL Own brands copies brands. Branda copies brands. Own brands copies own brands

46 BRANDS WHY IS CONSISTENCY IMPORTANT The brain first register what's known, before it actually are conscious of what we see This is a basic mechanism that packaging design, advertising, and brand building can not miss out on. To do major changes in packaging designs or displays can mean that existing customers can not see and will not find the brand This creates irritation and may cause lost sales. Brands are basically answering on our basic needs of SAFETY, SECUTITY AND CONTROL

47 BMW LOGO THRU 100 YEARS CONSISTENCY

48 CONSISTENCY ?

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50 UNDERSTAND THE RETAILERS! WHAT DO THEY WANT & NEED?

51 GUESS WHAT THE RETAILERS WANTS TO KNOW? We know their SHOPPING behaviour We know their CONSUMPTION behaviour

52 BUILD YOUR OWN BRANDS...or loose control

53 SMART INNOVATION